Millennial disruption: How the largest generationsince the boomers is transforming ecommerce

The largest generation since the Baby Boomers, a full third of the U.S. population, is entering its prime shopping years, which means it’s showtime for millennials -- and go-time for retailers. Tech-savvy, smartphone-devoted, social platform-connected millennial shoppers are leading the charge toward an ecommerce revolution, spending more money online in a given year than any other age group.

Millennials’ purchasing power:

$600B

spent annually

$1.4T

annual spend by 2020

30%

of all retail sales in the United States alone

$2,000

Amount the average millennial spends yearly on digital retail sites

Their spending is directly related to being the first -- and most enthusiastic -- mobile-centric generation.

39%

of millennials say they interact more with their smartphones than any human (including significant others, parents, friends, children, or co-workers)

87%

have their phones by their side every second of the day

80%

of millennials sleep next to their cellphones

And that’s how they’re connecting to the internet.

89%

use smartphones to connect (vs. 75% on laptops, 45% on tablets, and 37% on desktops)

Online shopping for everything is everything.

Brick and mortar stores are becoming a throwback for this generation.

45%

say they spend at least an hour a day browsing ecommerce sites

13%

of men

20%

of women

spend more than 2 hours shopping online every day

51%

of millennial purchases are made online

73%

say they spend at least an hour a day browsing ecommerce sites

63%

say they've bought an item on their smartphone

33%

of men

40%

of women

answered yes when asked if they agree with this statement: “I would buy everything online if I could”

They’re not only on retailers’ websites.

50%

of millennials have downloaded a mobile shopping app on their smartphone

But no matter how they shop online, they have high expectations.

They’re hyper-connected:

60%

switch from device to device depending on where they are and what they’re doing

68%

expect an experience that’s both integrated and seamless regardless of channel

They want you to give them deals.

Price has the greatest influence on millennials' buying decisions above all other factors, including quality, brand, store, and availability.

70%

scour the internet for promo codes before buying anything online

50%

of women

44%

of men

follow their favorite brands on Facebook and Twitter for notifications of sales and specials

And some millennials are willing to go to any lengths for a bargain:

47%

abandon shopping carts to trigger retargeting deals

26%

use fake birthdays

36%

use multiple email addresses

And bargain-hunting means loyalty can be bought.

78%

of millennials are more likely to choose a brand that offers a loyalty or rewards program over a brand that doesn’t

75%

of 18- to 24-year-olds

77%

of 25- to 34-year-olds

would consider joining a fee-based rewards program if their favorite retailer offered one

They want you to know who they are.

41%

will pay for an excellent customer experience, including personalized engagement across all touchpoints

60%

will provide details for an excellent customer experience, including personalized engagement across all touchpoints

30%

who said no to data sharing would change their mind in the face of an incentive offer

But they’re still hypersensitive to cyber security issues and identity fraud.